Boje Company Limited which produces soft drinks, is increasing the unit price for its product so as to remain a viable entity. The following information applies to this company. When the price of soft drinks increased from $9 to $10, the quantity demanded decreased from 150 units to 110 units. a) Explain elasticity, income, price and cross elasticity of demand.
b) Explain the FOUR (4) determinants of price elasticity of demand c) Calculate the price elasticity of demand and interpret the results.
d) Based on the results in section B, advise Boje about influencing total revenue.
